Covid-19: Supply Chains - Question

Part of the debate – in the House of Lords at 3:09 pm on 22nd June 2020.

Alert me about debates like this

Photo of Baroness Bloomfield of Hinton Waldrist Baroness Bloomfield of Hinton Waldrist Baroness in Waiting (HM Household) (Whip) 3:09 pm, 22nd June 2020

I am grateful to the noble Lord for his question and for giving me advance sight of it, since I do not think that I would have heard of that measure had he not done so. The Government have announced unprecedented support for businesses and workers. These measures include an uncapped package to help firms keep people in employment, deferred tax payments, business rate holidays, small business grants and commercial property mortgage holidays. In any situation where a main contractor becomes insolvent, the immediate focus will be on continuity of service, including by the incumbent contractor or its supply chain. Contracting authorities would first look to the terms of their contracts; they may have step-in rights, direct agreements or collateral agreements which allow them to engage directly with the supply chain behind the insolvent contractor. There are also provisions in UK procurement law—specifically, Regulation 72 of the Public Contracts Regulations 2015 —to allow replacement of an insolvent contractor.